Romania hopes for economic gains with energy advancements

Romanian officials are hoping that new Black Sea gas
extraction and pipeline plans will add to their country’s energy economy,
making Romania a local energy hub.

Reports from EU Today show a history of strategic energy
promotion within the country. Officials cite Romania's location, its
developed ports and its offshore oil infrastructure.

They also refer to total oil shipping capacity of 24 million
tons per year.

However, refining has declined nationally, and regulatory
and political hurdles still remain.

Richa Dhanuka,
an analyst of investment research and analytics at Aranca, a global research, analytics and advisory company, explained her outlook for the country's energy prospects to
Balkan Business Wire.

“The energy sector is a crucial
element for the economic development of Romania,” Dhanuka said. “Due to
Romania’s strategic location on the Black Sea, there is a substantial scope for
Romania to improve its energy sector and reduce imports of crude oil from
geopolitically unstable countries.”

Dhanuka said an
inter-ministerial team put together under Prime Minister Sorin Grindeanu will help
promote the technical backing for development of Black Sea resources under
Romania’s jurisdiction connected to new energy projects. The Romanian Black Sea
Titleholders Association (RBSTA) can help with exploration and
development of Romania’s Black Sea hydrocarbon resources and also supports
increasing offshore hydrocarbon production, she said.

“For efficient
development of the country’s energy sector, government officials and the
private sector need to collaborate and share calculated benefits and vision,”
Dhanuka said.

Dhanuka cited the involvement of KazMunayGas International
(KGMI), which she said entered the Romanian market in 2007. It has been functioning in Romania and the Black Sea Region
for over a decade, currently contributing approximately 3 percent of Romania’s GDP. Dhanuka
said KGMI is planning to expand its business in Europe, and its joint
venture with China Energy Company (CEFC) will help to boost
Romania’s energy sector.

“We believe KMGI’s
operation in Europe would help in diversifying the sources of crude oil from
the Black Sea flowing into Europe, thereby reducing Romania’s dependence on
risky imports,” Dhanuka said, adding that big new natural gas discoveries in
the Black Sea area are also a factor.